NEW REPORT: ADOPTION OF EU’S PHARMACEUTICAL PROPOSALS WOULD MEAN
CANADA LOSES OUT ON FAST-GROWING GENERIC INDUSTRY INVESTMENTS
Toronto, October 11, 2011 – Canada could face a loss of jobs and investment in its R&D intensive and fast-growing generic pharmaceutical industry if the European Union’s pharmaceutical intellectual property proposals in the current Canada-EU trade negotiations are adopted, according to a new report released today. The report by Montreal-based E&B Data was commissioned by the Canadian Generic Pharmaceutical Association (CGPA).
The report notes that the global demand for generic pharmaceuticals is growing at a rate of 10 percent each year, and the global market is expected to grow to $358 billion by 2016. Canada is currently well positioned to benefit from the global growth of this industry through existing generic pharmaceutical R&D and manufacturing facility investments by several global and Canadian-based companies.
Canada’s generic pharmaceutical industry has a strong industrial base centred in the Montreal, Toronto and Winnipeg regions, and employs more than 11,000 Canadians in highly skilled R&D and manufacturing positions. In addition to producing most of the generic drugs sold in the domestic market, generic products manufactured in Canadian facilities are exported to more than 115 countries around the globe. The value of these low-cost exported products exceeds more than $1 billion annually.
The EU has tabled several proposed changes to Canada’s intellectual property regime for pharmaceuticals in the current negotiations for a Comprehensive Economic and Trade Agreement (CETA), which would extend periods of market exclusivity for brand-name drugs by an average of 3.5 years and add an estimated $2.8 billion annually to Canada’s prescription drug bill. These increased costs would be paid by private and public sector payers, consumers and taxpayers.
According to today’s report, if the EU’s proposals are adopted, generic pharmaceutical companies in Canada could lose their ability to seek timely access to new export markets, and opportunities in foreign markets would be captured earlier by manufacturers in countries that do not have the comparable barriers to trade that the EU proposals would create.1. Short- to medium-term impact
About the Canadian Generic Pharmaceutical Association
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